PERTH AMBOY, N.J., April 28, 2005 (PRIMEZONE) -- US Starcom, Inc. (Pink Sheets:USTA) announced today that it has signed a distribution agreement with the Bodega Association of the U.S., Inc., for the distribution of prepaid phone cards and related products in up to 7,000 associated retail stores. The agreement is for 12 months with a renewal clause.
John A. DiDomenico, President and CEO of US Starcom said, "This agreement is a significant expansion of current sales within the Latino communities. This agreement alone should more than double the company's revenues and further open markets into Mexico, Colombia, Central America and the Caribbean."
"We anticipate the average per-store sale to grow to $750 per month," states Vincent Annunziata, Vice President of Sales and Marketing. "This announcement is the first of many that we expect to make for other markets nationwide within the next several weeks."
This agreement with the Bodega Association will be managed by the New Jersey office of US Starcom and will provide for prepaid long distance phone cards for as little as $2.00 for 90 minutes between the U.S. and the Dominican Republic, as an example.
About the Bodega Association of the U.S.: The Association is a local development corporation that was formed to link the interests of independent inner-city entrepreneurs. It currently represents the interests of more than 7,000 grocery stores throughout New York State.
About US Starcom: A leader in providing value-added prepaid services and solutions to urban neighborhoods to enhance communications and entertainment. With a sales distribution network extending to thousands of urban locations, more than 50 VoIP gateways and with no long-term debt, US Starcom will continue its rapid expansion into the distribution of alternative communication products and services, including international long distance, prepaid phone cards, wireless dial around applications, stored value services and Internet service enhancements. US Starcom's wider goal is to use its distribution network in urban neighborhoods to sell other services through strategic alliances and joint distribution campaigns -- in effect becoming a massively specialized distribution enterprise. Regional offices are located in Reno, Los Angeles, Atlanta and Perth Amboy, NJ. The company is poised for significant growth.
Safe Harbor Statement
This release contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These statements include all statements that are not of historical fact regarding the intent or expectations of the Company among other things: trends affecting the Company's financial condition or results of operations and the Company's growth strategy. Investors are cautioned that any such statements are not guarantees of future performance and involve risks, many of which are beyond the Company's control, and that results may differ materially from those projected in the forward-looking statements.